PROVIDENCE — The State Budget Office has projected a budget surplus in the current fiscal year of $129.1 million — $12.5 million more than what the office anticipated in February.
According to Governor Almond’s office, which released the State Budget Office’s third quarter report, the governor’s budget proposal for fiscal year 2002 incorporates spending $116 million of the projected surplus. The report forecasts the annual expenditure requirements of the various state departments and agencies based upon year-to-date spending and caseload changes, and also incorporates the most recent revenue estimates, the governor’s office stated.
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The Budget Office’s report identifies by department and by major categories where variances will occur from the originally enacted budgets for the current fiscal year. Compared to the second quarter figures released in February, the most recent quarterly report shows $35.3 million in net additional revenues, which are led by personal income tax collections projected last week at the Consensus Revenue Estimating Conference. However, $18.8 million in increased expenditures combined with other aspects of the budget result in the $12.5 million increase in the surplus, the governor’s office stated.
Among additional expense items on the budget are:
- Projected caseload costs for DHS of $5.2 million
- DCYF caseload-related expenditures of $3 million
- Increased personnel costs for Corrections of $1.2 million
- Increased operating costs for DOA (Taxation and Registry) of $1.7 million
- Judiciary’s projected deficit for personnel-related costs of $1 million.
Governor Almond stated the surplus figures reflected “continued strong employment in Rhode Island as shown by the personal income tax receipts. However, there are signs of a slowing economy and we must prudently plan for the use of this surplus as we budget for next year.”
